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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Amer.Express | LSE:AMX | London | Ordinary Share | COM USD0.20 |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 2,900.00 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMAMX
American Express Company (NYSE:AXP) today reported third-quarter net income of $1.3 billion, down 14 percent from $1.5 billion a year ago. Diluted earnings per share was $1.24, down 11 percent from $1.40 a year ago.
(Millions, except percentages and per share amounts) Quarters Ended Percentage Nine Months Ended Percentage September 30, Inc/(Dec) September 30, Inc/(Dec) 2015 2014 2015 2014 Total $ 8,193 $ 8,303 (1%) $ 24,427 $ 25,107 (3%) Revenues Net of Interest Expense Net $ 1,266 $ 1,477 (14%) $ 4,264 $ 4,438 (4%) Income Earnings Per Common Share - Diluted: Net $ 1.24 $ 1.40 (11%) $ 4.15 $ 4.17 (0%) Income Attributable to Common Shareholders1 Average 997 1,047 (5%) 1,011 1,057 (4%) Diluted Common Shares Outstanding Return 26.8 % 28.8 % 26.8 % 28.8 % on Average Equity
Results for the quarter were significantly affected by higher spending on growth initiatives, earlier changes to certain renewed co-brand partnerships, and the stronger U.S. dollar.
Consolidated total revenues net of interest expense was $8.2 billion, down 1 percent from $8.3 billion a year ago. Excluding the impact of foreign exchange rates, adjusted revenues rose 3 percent.2 The increase primarily reflected continued growth in the loan portfolio and modestly higher Card Member spending.
Consolidated provisions for losses totaled $529 million, up 8 percent from $488 million a year ago, reflecting an addition to reserves in the current year compared to a reserve release a year ago.
Consolidated expenses totaled $5.7 billion, up 3 percent from $5.6 billion a year ago. On an FX-adjusted basis, consolidated expenses rose 7 percent, reflecting higher spending on growth initiatives, primarily for marketing and technology development.2 The increase was also driven by higher rewards and Card Member services costs due to higher Card Member spending volumes and the impact of certain previously renewed co-brand partnerships.
The effective tax rate was 35 percent, compared to 34 percent a year ago.
The company's return on average equity (ROE) was 26.8 percent, down from 28.8 percent a year ago.
"While overall results were in line with our 2015 financial outlook, the quarter reflected the headwinds and challenges that we have been dealing with throughout this year," said Kenneth I. Chenault, chairman and chief executive officer. "Reported revenue and billed business levels were suppressed by a stronger U.S. dollar. In addition, the renewals and changes that we made earlier this year to some co-brand relationships also entailed some significant incremental expenses this quarter.
"Against the backdrop of a challenging environment and an uneven global economy, we continued to move forward with initiatives to build our business for the years ahead. With our Costco relationship set to end in the U.S. next year, we're investing substantially more in marketing, incentives and technology to attract a range of new Card Members and additional spending across our network. We're expanding card acceptance at an accelerated pace among smaller merchants and also added Sam's Club, the eighth largest retailer in the U.S., to our network earlier this month. We're broadening our relationships with Card Members to accommodate more of their borrowing needs, and our loan portfolio continued its steady growth this quarter.
"The flexibility to invest in these and other growth initiatives comes in part from our ongoing progress in containing operating expenses throughout the company. We also continue to benefit from a strong balance sheet that allows us to return a substantial portion of our earnings to shareholders through share repurchases and dividends.
"We continue to expect quarterly earnings performance to be more uneven than it has been historically as we move forward on initiatives to help ensure our organization is in position to return to growth and deliver on the multi-year financial outlook that we first shared in February of this year. Throughout this year, we have said that our full year 2015 outlook was for EPS to be flat to modestly down versus the prior year. Barring any contingencies, we now expect our full year 2015 EPS to be between $5.20 and $5.35. We believe our outlook to return to positive earnings per share growth in 2016 and within our target range of 12 to 15 percent in 2017 remains appropriate."
Segment Results
U.S. Card Services reported third-quarter net income of $794 million, down 11 percent from $889 million a year ago.
Total revenues net of interest expense increased 5 percent to $4.7 billion, from $4.5 billion a year ago. The rise reflected higher net interest income from growth in the loan portfolio and an increase in Card Member spending.
Provisions for losses totaled $390 million, up 23 percent from $316 million a year ago. The increase reflected an addition to reserves in the current year compared to a reserve release a year ago.
Total expenses increased 11 percent to $3.1 billion from $2.8 billion a year ago. The rise reflected in part higher spending on growth initiatives, primarily within marketing and promotion and technology development. The increase was also driven by higher rewards and services costs due to higher Card Member spending volumes and the impact of certain previously renewed co-brand partnerships.
The effective tax rate for the quarter remained unchanged from a year ago at 37 percent.
International Card Services reported third-quarter net income of $89 million, down 37 percent from $142 million a year ago. The decline largely reflected a significant impact from a stronger U.S. dollar.
Total revenues net of interest expense were $1.2 billion, down 11 percent from $1.4 billion a year ago. On an FX-adjusted basis, revenues rose 4 percent, reflecting in part higher net card fees and an increase in revenues from the Loyalty Partner business.2
Total expenses were $1.0 billion, down 6 percent from $1.1 billion a year ago. On an FX-adjusted basis, expenses were up 4 percent, reflecting increased spending on growth initiatives, primarily within marketing.2
The effective tax rate was 15 percent compared to 19 percent a year ago.
Global Commercial Services reported third-quarter net income of $151 million, down 26 percent from $204 million a year ago.
Total revenues net of interest expense were $817 million, down 9 percent from $900 million a year ago. On an FX-adjusted basis, revenues declined 5 percent, primarily reflecting a year-ago gain on the sale of investment securities and lower discount revenue.2
Total expenses were $541 million, compared to $542 million a year ago. The quarter reflected expenses associated with technology development to support growth initiatives.
The effective tax rate was 37 percent, up from 34 percent a year ago.
Global Network & Merchant Services reported third-quarter net income of $462 million, up 8 percent from $427 million a year ago.
Total revenues net of interest expense were $1.4 billion, down 6 percent from $1.5 billion a year ago. On an FX-adjusted basis, revenues increased 1 percent, reflecting in part increased revenue from bank partners.2
Total expenses decreased 16 percent to $633 million, from $756 million a year ago, primarily reflecting a litigation reserve release associated with a recently rejected merchant class settlement.
The effective tax rate was 36 percent, unchanged from a year ago.
Corporate and Other reported third-quarter net loss of $230 million compared with net loss of $185 million a year ago.
About American Express
American Express is a global services company, providing customers with access to products, insights and experiences that enrich lives and build business success. Learn more at americanexpress.com and connect with us on facebook.com/americanexpress, foursquare.com/americanexpress, linkedin.com/company/american-express, twitter.com/americanexpress, and youtube.com/americanexpress.
Key links to products and services: charge and credit cards, business credit cards, Plenti rewards program, travel services, gift cards, prepaid cards, merchant services, corporate card and business travel.
The 2015 Third Quarter Earnings Supplement will be available today on the American Express website at http://ir.americanexpress.com. An investor conference call will be held at 5:00 p.m. (ET) today to discuss third-quarter earnings results. Live audio and presentation slides for the investor conference call will be available to the general public at the same website. A replay of the conference call will be available later today at the same website address.
Cautionary Note Regarding Forward-looking Statements
This release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties. The forward-looking statements, which address the Company's expected business and financial performance and which include management's outlook for 2015-2017, among other matters, contain words such as "believe," "expect," "estimate," "anticipate," "intend," "plan," "aim," "will," "may," "should," "could," "would," "likely," and similar expressions. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The Company undertakes no obligation to update or revise any forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements, include, but are not limited to, the following:
-- the Company's ability to achieve earnings per common share ("EPS")
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October 22, 2015 02:00 ET (06:00 GMT)
growth for the full year 2015 between $5.20 and $5.35, which will
depend in part on the following: billed business and revenue growth
rates in the fourth quarter, which could be impacted by, among other
things, a decline in consumer confidence impacting the willingness and
ability of Card Members to sustain spending, deterioration in the
corporate and small business spending levels, weakening economic
conditions in the U.S. or internationally, concerns regarding U.S.
debt and budget matters, and an increase in the erosion of the average
discount rate due to mix, competition, timing of merchant re-signings
or other factors; the impact of any potential restructuring charges or
other contingencies, including, but not limited to, unanticipated
litigation-related expenses, impairments to goodwill or other
intangible assets, regulatory fines, an increase in Card Member
reimbursements and changes in reserves; credit performance worsening
beyond current expectations; a decline in the Card Member loan
portfolio; the Company's tax rate remaining in line with recent
performance, which could be impacted by, among other things, the
potential failure of the U.S. Congress to renew legislation regarding
the active financing exception to Subpart F of the Internal Revenue
Code, the Company's geographic mix of income being weighted more to
higher tax jurisdictions than expected and unfavorable tax audits and
other unanticipated tax items; the ability to continue to realize
benefits from the Company's 2014 restructuring actions and operating
leverage at levels consistent with recent quarters; the U.S. dollar
strengthening beyond current expectations; the amount the Company
spends in the fourth quarter on growth initiatives; significant
changes in interest rates; the impact of accounting changes and
reclassifications; and the Company's ability to continue executing its
share repurchase program;
-- the Company's ability to achieve earnings per share growth in 2016 and
return to the Company's on-average and over-time EPS growth target in
2017, which will depend on factors such as: the Company's success in
implementing its strategies and business initiatives, including
growing profitable spending through proprietary, co-brand and network
products, increasing penetration among corporate clients, expanding
its international footprint, growing loyalty coalitions and marketing
services, increasing merchant acceptance, controlling expenses and
addressing the end of the Costco U.S. relationship; the terms and
outcome of the Costco U.S. Card Member loan portfolio sale
discussions; the behavior of Card Members and their actual spending
patterns; the impact of new regulations in the European Union, the
court's order in the U.S. Department of Justice case in the
marketplace and regulatory and competitive pressures generally; the
effectiveness of the Company's marketing and loyalty programs; credit
trends; changes in foreign currency exchange and interest rates;
changes in general economic conditions, such as GDP growth, consumer
confidence, unemployment and the housing market; and on other factors
outside management's control;
-- the actual amount to be spent by the Company on growth initiatives,
including on marketing and promotion, technology development and
contra-discount revenue items, as well as the timing of any such
spending, which will be based in part on management's assessment of
competitive opportunities, overall business performance, the amount of
any potential gain arising from a sale of the Costco U.S. Card Member
loan portfolio the Company decides to spend on growth initiatives,
contractual obligations with business partners, management's ability
to identify attractive investment opportunities and make such
investments, which could be impacted by business, regulatory or legal
complexities and the Company's performance, and the Company's ability
to realize efficiencies and control expenses to fund such spending;
-- uncertainty related to the Company's ability to drive growth and
achieve attractive returns from spending on growth initiatives, which
will depend in part on the Company's ability to develop and market
value propositions that appeal to Card Members and new customers and
on the Company's ability to offer attractive services and rewards
programs, as well as increasing competition, brand perceptions and
reputation, the behavior of the Company's Card Members and their
actual spending patterns, and ineffective or insufficient levels of
investments, including on marketing and promotion expenses, new
product development, acquisition efforts, including through digital
channels, and attractive Card Member services and rewards programs;
-- the ability to hold annual operating expense growth to less than 3
percent for 2015, which could be impacted by unanticipated increases
in significant categories of operating expenses, such as consulting or
professional fees, compliance or regulatory-related costs and
technology costs, any potential restructuring charges, the payment of
civil money penalties, disgorgement and restitution, the Company's
decision to increase or decrease spending in such areas as technology
development depending on overall business performance, the Company's
ability to achieve the expected benefits of the Company's
reengineering plans, the Company's ability to balance expense control
and investments in the business, the impact of changes in foreign
currency exchange rates on costs, the impact of accounting changes and
reclassifications, and the level of acquisition activity and related
expenses;
-- the Company's lending write-off rates increasing more quickly than
current expectations and reserves building more than modestly, and the
concomitant impact on the Company's provision expense being higher
than current expectations, which will depend in part on changes in the
level of the Company's loan balances, delinquency rates of Card
Members, unemployment rates, the volume of bankruptcies and recoveries
of previously written-off loans;
-- uncertainty relating to the ultimate outcome of the lawsuit filed
against the Company by the U.S. Department of Justice and certain
state attorneys general, including the success or failure of our
appeal and the impact of the court's order in the marketplace,
including significantly increased merchant steering or other actions
impairing the Card Member experience, as well as on existing private
merchant cases, and potentially additional litigation and/or
arbitrations;
-- the Company's ability to execute against its lending strategy, which
may be affected by increasing competition, brand perceptions and
reputation, the Company's ability to manage risk in a growing Card
Member loan portfolio, and the behavior of the Company's Card Members
and their actual spending patterns, which in turn may be driven by the
Company's ability to issue new and enhanced card products, offer
attractive services and rewards programs, attract new Card Members,
reduce Card Member attrition and capture a greater share of existing
Card Members' spending and borrowing;
-- the ability of the Company to grow in international markets, which
could be impacted by business practices that favor local competitors
or prohibit or limit foreign ownership of certain businesses;
continued regulation in the payments space; the Company's ability to
partner with additional GNS issuers and the success of GNS partners in
acquiring Card Members and/or merchants; political or economic
instability, which could affect lending and other commercial
activities, among other businesses; the Company's ability to tailor
products and services to make them attractive to local customers; and
competitors with more scale and experience and more established
relationships with relevant customers, regulators and industry
participants;
-- uncertainties associated with the impact of any potential sale of the
Costco Card Member loan portfolio, including the result of discussions
with Costco and its new cobrand issuer, the ability and willingness of
the new issuer to purchase the portfolio and the timing and magnitude
of the recognition of any gain by the Company as a result of a sale,
which will be impacted by the credit quality and performance of the
portfolio;
-- the possibility that the Company will not fully execute on its plans
for OptBlue, including bringing incremental volumes onto the American
Express network over the next several years, which will depend in part
on the success of OptBlue merchant acquirers in signing merchants to
accept American Express, which could be impacted by the pricing set by
the merchant acquirers and the value proposition offered to small
merchants and the priority given to the Company by OptBlue merchant
acquirers, as well as the willingness of Card Members to use American
Express cards at small merchants;
-- the ability of the Company to add new benefits and introduce new
products and services, which will depend in part on the Company's
ongoing investment in product innovation, the ability of the Company
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to update its systems and platforms to support new products, services
and benefits, the degree of interest of Card Members in the value
proposition offered by the Company and the Company's ability to tailor
new products and services to make them attractive to Card Members; and
-- factors beyond the Company's control such as changes in global
economic and business conditions, including consumer and business
spending, the availability and cost of capital, unemployment and
political conditions, foreign currency rates, fire, power loss,
disruptions in telecommunications, severe weather conditions, natural
disasters, health pandemics, terrorism, cyber attacks or fraud, which
could significantly affect spending on American Express cards,
delinquency rates, loan balances and travel-related spending or
disrupt the Company's global network systems and ability to process
transactions.
A further description of these uncertainties and other risks can be found in the Company's Annual Report on Form 10-K for the year ended December 31, 2014, the Company's Quarterly Reports on Form 10-Q for the quarters ended March 31 and June 30, 2015 and the Company's other reports filed with the Securities and Exchange Commission.
1Represents net income less earnings allocated to participating share awards of $10 million and $11 million for the three months ended September 30, 2015 and 2014, respectively, and $32 million and $35 million for the nine months ended September 30, 2015 and 2014, respectively. In addition, net income is further reduced by dividends on preferred shares of $22 million and $42 million for the three and nine months ended September 30, 2015, respectively. No preferred dividends were paid in 2014. 2 As reported in this release, FX-adjusted information, which constitute non-GAAP financial measures, assumes a constant exchange rate between the periods being compared for purposes of currency translation into U.S. dollars (i.e., assumes the foreign exchange rates used to determine results for the three months ended September 30, 2015 apply to the period(s) against which such results are being compared). Certain amounts included in the calculation of FX-adjusted revenues and expenses, which constitute non-GAAP measures, are subject to management allocations. The company believes the presentation of information on an FX-adjusted basis is helpful to investors by making it easier to compare the company's performance in one period to that of another period without the variability caused by fluctuations in currency exchange rates. American (Preliminary) Express Company Consolidated Statements of Income (Millions, except percentages and per share amounts) Quarters Ended % Change Nine Months Ended % Change Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Sep 30, 2015 vs. Sep 30, Sep 30, 2015 vs. 2015 2015 2015 2014 2014 Sep 30, 2014 2015 2014 Sep 30, 2014 Revenues Non-interest revenues Discount $ 4,778 $ 4,946 $ 4,660 $ 4,961 $ 4,889 (2 ) $ 14,384 $ 14,428 (0 ) revenue (A) Net card 679 667 667 671 680 (0 ) 2,013 2,041 (1 ) fees Other fees 727 727 708 715 746 (3 ) 2,162 2,911 (26 ) and commissions (B) Other 504 521 468 1,310 593 (15 ) 1,493 1,679 (11 ) Total 6,688 6,861 6,503 7,657 6,908 (3 ) 20,052 21,059 (5 ) non-interest revenues Interest income Interest 1,847 1,776 1,795 1,769 1,753 5 5,418 5,160 5 on loans Interest 38 41 41 43 45 (16 ) 120 136 (12 ) and dividends on investment securities Deposits 19 20 21 17 17 12 60 54 11 with banks and other Total 1,904 1,837 1,857 1,829 1,815 5 5,598 5,350 5 interest income Interest expense Deposits 125 109 103 97 91 37 337 276 22 Long-term 274 305 307 308 329 (17 ) 886 1,026 (14 ) debt and other Total 399 414 410 405 420 (5 ) 1,223 1,302 (6 ) interest expense Net 1,505 1,423 1,447 1,424 1,395 8 4,375 4,048 8 interest income Total 8,193 8,284 7,950 9,081 8,303 (1 ) 24,427 25,107 (3 ) revenues net of interest expense Provisions for losses Charge 203 165 174 198 196 4 542 594 (9 ) card Card 309 285 235 341 265 17 829 797 4 Member loans Other 17 17 11 43 27 (37 ) 45 71 (37 ) Total 529 467 420 582 488 8 1,416 1,462 (3 ) provisions for losses Total 7,664 7,817 7,530 8,499 7,815 (2 ) 23,011 23,645 (3 ) revenues net of interest expense after provisions for losses Expenses Marketing 847 761 609 887 783 8 2,217 2,329 (5 ) and promotion (A) Card 1,763 1,799 1,640 1,881 1,695 4 5,202 5,050 3 Member rewards Card 269 242 261 203 205 31 772 619 25 Member services and other Salaries 1,212 1,250 1,305 1,607 1,290 (6 ) 3,767 4,488 (16 ) and employee benefits Professional 687 655 624 768 731 (6 ) 1,966 2,240 (12 ) services Occupancy 523 415 434 446 432 21 1,372 1,361 1 and equipment Communications 84 85 88 98 91 (8 ) 257 285 (10 ) Other, 341 380 253 384 342 (0 ) 974 507 92 net Total 5,726 5,587 5,214 6,274 5,569 3 16,527 16,879 (2 ) Pretax 1,938 2,230 2,316 2,225 2,246 (14 ) 6,484 6,766 (4 ) income Income 672 757 791 778 769 (13 ) 2,220 2,328 (5 ) tax provision Net $ 1,266 $ 1,473 $ 1,525 $ 1,447 $ 1,477 (14 ) $ 4,264 $ 4,438 (4 ) income Net $ 1,234 $ 1,442 $ 1,514 $ 1,436 $ 1,466 (16 ) $ 4,190 $ 4,403 (5 ) income attributable to common shareholders (C) Effective 34.7 % 33.9 % 34.2 % 35.0 % 34.2 % 34.2 % 34.4 % tax rate Earnings Per Common Share BASIC Net $ 1.24 $ 1.43 $ 1.49 $ 1.40 $ 1.41 (12 ) $ 4.16 $ 4.19 (1 ) income attributable to common shareholders Average 994 1,009 1,019 1,028 1,041 (5 ) 1,007 1,051 (4 ) common shares outstanding DILUTED Net $ 1.24 $ 1.42 $ 1.48 $ 1.39 $ 1.40 (11 ) $ 4.15 $ 4.17 (0 ) income attributable to common shareholders Average 997 1,013 1,023 1,033 1,047 (5 ) 1,011 1,057 (4 ) common shares outstanding Cash $ 0.29 $ 0.29 $ 0.26 $ 0.26 $ 0.26 12 $ 0.84 $ 0.75 12 dividends declared per common share # - Denotes a variance of more than 100 percent. American Express Company Condensed Consolidated Balance Sheets (Billions, except percentages, per share amounts and where indicated) Quarters Ended % Change Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Sep 30, 2015 vs. 2015 2015 2015 2014 2014 Sep 30, 2014 Assets Cash $ 20 $ 21 $ 24 $ 22 $ 21 (5 ) & cash equivalents Accounts 46 47 46 47 47 (2 ) receivable Investment 4 5 4 4 5 (20 ) securities Loans 69 69 67 70 66 5 Other 15 15 14 16 15 - assets Total $ 154 $ 157 $ 155 $ 159 $ 154 - assets Liabilities and Shareholders' Equity Customer $ 49 $ 47 $ 45 $ 44 $ 43 14 deposits
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Short-term 3 4 2 3 3 - borrowings Long-term 49 53 55 58 56 (13 ) debt Other 32 31 31 33 32 - liabilities Total 133 135 133 138 134 (1 ) liabilities Shareholders' 21 22 22 21 20 5 Equity Total $ 154 $ 157 $ 155 $ 159 $ 154 - liabilities and shareholders' equity Selected Statistical Information Return 26.8 % 28.1 % 29.0 % 29.1 % 28.8 % on average equity (D) Return 27.8 % 28.8 % 29.3 % 29.0 % 28.6 % on average common equity (D) Return 34.2 % 35.4 % 36.2 % 35.9 % 35.6 % on average tangible common equity (D) Common 985 1,002 1,016 1,023 1,035 (5 ) shares outstanding (millions) Book $ 20.06 $ 20.27 $ 19.93 $ 19.49 $ 19.54 3 value per common share (dollars) Shareholders' $ 21.3 $ 21.9 $ 21.8 $ 20.7 $ 20.2 6 equity # - Denotes a variance of more than 100 percent. American Express Company Financial Summary (Millions) Quarters Ended % Change Nine Months Ended % Change Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Sep 30, 2015 vs. Sep 30, Sep 30, 2015 vs. 2015 2015 2015 2014 2014 Sep 30, 2014 2015 2014 Sep 30, 2014 Total revenues net of interest expense U.S. $ 4,729 $ 4,726 $ 4,525 $ 4,594 $ 4,501 5 $ 13,980 $ 13,216 6 Card Services International 1,238 1,258 1,241 1,355 1,394 (11 ) 3,737 4,137 (10 ) Card Services Global 817 881 827 1,585 900 (9 ) 2,525 3,363 (25 ) Commercial Services Global 1,370 1,396 1,344 1,477 1,450 (6 ) 4,110 4,270 (4 ) Network & Merchant Services 8,154 8,261 7,937 9,011 8,245 (1 ) 24,352 24,986 (3 ) Corporate 39 23 13 70 58 (33 ) 75 121 (38 ) & Other CONSOLIDATED $ 8,193 $ 8,284 $ 7,950 $ 9,081 $ 8,303 (1 ) $ 24,427 $ 25,107 (3 ) TOTAL REVENUES NET OF INTEREST EXPENSE Pretax income (loss) U.S. $ 1,262 $ 1,366 $ 1,480 $ 1,083 $ 1,411 (11 ) $ 4,108 $ 4,017 2 Card Services International 105 144 184 1 176 (40 ) 433 448 (3 ) Card Services Global 238 314 284 949 309 (23 ) 836 1,459 (43 ) Commercial Services Global 723 695 698 670 670 8 2,116 1,950 9 Network & Merchant Services 2,328 2,519 2,646 2,703 2,566 (9 ) 7,493 7,874 (5 ) Corporate (390 ) (289 ) (330 ) (478 ) (320 ) 22 (1,009 ) (1,108 ) (9 ) & Other PRETAX $ 1,938 $ 2,230 $ 2,316 $ 2,225 $ 2,246 (14 ) $ 6,484 $ 6,766 (4 ) INCOME Net income (loss) U.S. $ 794 $ 886 $ 934 $ 665 $ 889 (11 ) $ 2,614 $ 2,535 3 Card Services International 89 125 134 33 142 (37 ) 348 378 (8 ) Card Services Global 151 203 180 594 204 (26 ) 534 949 (44 ) Commercial Services Global 462 448 444 417 427 8 1,354 1,243 9 Network & Merchant Services 1,496 1,662 1,692 1,709 1,662 (10 ) 4,850 5,105 (5 ) Corporate (230 ) (189 ) (167 ) (262 ) (185 ) 24 (586 ) (667 ) (12 ) & Other NET $ 1,266 $ 1,473 $ 1,525 $ 1,447 $ 1,477 (14 ) $ 4,264 $ 4,438 (4 ) INCOME # - Denotes a variance of more than 100 percent. American (Preliminary) Express Company Selected Statistical Information (Billions, except percentages and where indicated) Quarters Ended % Change Nine Months Ended % Change Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Sep 30, 2015 vs. Sep 30, Sep 30, 2015 vs. 2015 2015 2015 2014 2014 Sep 30, 2014 2015 2014 Sep 30, 2014 Card billed business (E): United $ 180.3 $ 181.6 $ 169.2 $ 182.5 $ 173.0 4 $ 531.1 $ 505.6 5 States Outside 78.6 80.4 76.4 86.0 85.1 (8 ) 235.4 248.7 (5 ) the United States Total $ 258.9 $ 262.0 $ 245.6 $ 268.5 $ 258.1 0 $ 766.5 $ 754.3 2 Total cards-in-force (F) (millions): United 56.4 55.3 54.8 54.9 54.5 3 56.4 54.5 3 States Outside 59.4 58.5 57.4 57.3 56.6 5 59.4 56.6 5 the United States Total 115.8 113.8 112.2 112.2 111.1 4 115.8 111.1 4 Basic cards-in-force (F) (millions): United 43.6 42.8 42.4 42.6 42.2 3 43.6 42.2 3 States Outside 49.0 48.2 47.3 47.0 46.3 6 49 46.3 6 the United States Total 92.6 91.0 89.7 89.6 88.5 5 92.6 88.5 5 Average 2.46 % 2.49 % 2.49 % 2.44 % 2.48 % 2.48 % 2.49 % discount rate (A) (G) Average $ 4,165 $ 4,272 $ 4,008 $ 4,377 $ 4,223 (1 ) $ 12,437 $ 12,504 (1 ) basic Card Member spending (dollars) (H) Average $ 39 $ 39 $ 39 $ 39 $ 40 (3 ) $ 39 $ 41 (5 ) fee per card (dollars) (H) Average $ 44 $ 43 $ 44 $ 44 $ 45 (2 ) $ 44 $ 45 (2 ) fee per card adjusted (dollars) (H) Worldwide Card Member receivables: Total $ 44.3 $ 44.9 $ 43.7 $ 44.9 $ 45.1 (2 ) $ 44.3 $ 45.1 (2 ) receivables Loss reserves (millions): Beginning $ 420 $ 429 $ 465 $ 432 $ 413 2 $ 465 $ 386 20 balance Provisions 203 165 174 198 196 4 542 594 (9 ) (I) Net (174 ) (171 ) (199 ) (156 ) (168 ) 4 (544 ) (527 ) 3 write-offs (J) Other (K) (8 ) (3 ) (11 ) (9 ) (9 ) (11 ) (22 ) (21 ) 5 Ending $ 441 $ 420 $ 429 $ 465 $ 432 2 $ 441 $ 432 2 balance % 1.0 % 0.9 % 1.0 % 1.0 % 1.0 % 1.0 % 1.0 % of receivables Net 1.8 % 1.7 % 2.1 % 1.5 % 1.6 % 1.8 % 1.8 % write-off rate (principal only) - USCS/ICS (L) Net 2.0 % 1.9 % 2.3 % 1.7 % 1.8 % 2.1 % 2.0 % write-off rate (principal and fees) - USCS/ICS (L) 30 days 1.6 % 1.5 % 1.6 % 1.6 % 1.6 % 1.6 % 1.6 % past due as a % of total - USCS/ICS Net loss 0.08 % 0.09 % 0.10 % 0.08 % 0.09 % 0.09 % 0.09 % ratio (as a % of charge volume) - GCS 90 days 0.7 % 0.7 % 0.7 % 0.8 % 0.8 % 0.7 % 0.8 % past billing as a % of total - GCS Worldwide Card Member loans: Total $ 68.9 $ 69.0 $ 66.8 $ 70.4 $ 66.1 4 $ 68.9 $ 66.1 4 loans Loss reserves (millions): Beginning $ 1,132 $ 1,130 $ 1,201 $ 1,146 $ 1,170 (3 ) $ 1,201 $ 1,261 (5 ) balance Provisions 309 285 235 341 265 17 829 797 4 (I) Net (231 ) (243 ) (259 ) (237 ) (245 ) (6 ) (733 ) (786 ) (7 ) write-offs - principal (J) Net (37 ) (42 ) (43 ) (40 ) (40 ) (8 ) (122 ) (124 ) (2 ) write-offs - interest and fees (J) Other (K) (9 ) 2 (4 ) (9 ) (4 ) # (11 ) (2 ) #
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October 22, 2015 02:00 ET (06:00 GMT)
Ending $ 1,164 $ 1,132 $ 1,130 $ 1,201 $ 1,146 2 $ 1,164 $ 1,146 2 balance Ending $ 1,114 $ 1,076 $ 1,074 $ 1,149 $ 1,093 2 $ 1,114 $ 1,093 2 reserves - principal Ending $ 50 $ 56 $ 56 $ 52 $ 53 (6 ) $ 50 $ 53 (6 ) reserves - interest and fees % 1.7 % 1.6 % 1.7 % 1.7 % 1.7 % 1.7 % 1.7 % of loans % of past 164 % 171 % 163 % 167 % 165 % 164 % 165 % due Average $ 69.0 $ 68.0 $ 67.6 $ 67.7 $ 66.4 4 $ 68.3 $ 65.4 4 loans Net 1.3 % 1.4 % 1.5 % 1.4 % 1.5 % 1.4 % 1.6 % write-off rate (principal only) (L) Net 1.6 % 1.7 % 1.8 % 1.6 % 1.7 % 1.7 % 1.9 % write-off rate (principal, interest and fees) (L) 30 days 1.0 % 1.0 % 1.0 % 1.0 % 1.1 % 1.0 % 1.1 % past due loans as a % of total Net 8.7 % 8.4 % 8.6 % 8.4 % 8.5 % 8.5 % 8.1 % interest income divided by average loans (M) Net 9.5 % 9.3 % 9.6 % 9.3 % 9.3 % 9.5 % 9.3 % interest yield on Card Member loans (M) # - Denotes a variance of more than 100 percent. U.S. Card (Preliminary) Services Selected Income Statement Data (Millions, except percentages) Quarters Ended % Change Nine Months Ended % Change Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Sep 30, 2015 vs. Sep 30, Sep 30, 2015 vs. 2015 2015 2015 2014 2014 Sep 30, 2014 2015 2014 Sep 30, 2014 Revenues Non-interest $ 3,302 $ 3,372 $ 3,148 $ 3,253 $ 3,188 4 $ 9,822 $ 9,375 5 revenues (A) Interest 1,593 1,517 1,529 1,490 1,465 9 4,639 4,296 8 income Interest 166 163 152 149 152 9 481 455 6 expense Net 1,427 1,354 1,377 1,341 1,313 9 4,158 3,841 8 interest income Total 4,729 4,726 4,525 4,594 4,501 5 13,980 13,216 6 revenues net of interest expense Provisions 390 327 296 399 316 23 1,013 997 2 for losses Total 4,339 4,399 4,229 4,195 4,185 4 12,967 12,219 6 revenues net of interest expense after provisions for losses Expenses Marketing, 2,029 1,996 1,733 2,038 1,764 15 5,758 5,159 12 promotion, rewards, Card Member services and other (A) Salaries 1,048 1,037 1,016 1,074 1,010 4 3,101 3,043 2 and employee benefits and other operating expenses Total 3,077 3,033 2,749 3,112 2,774 11 8,859 8,202 8 Pretax 1,262 1,366 1,480 1,083 1,411 (11 ) 4,108 4,017 2 segment income Income 468 480 546 418 522 (10 ) 1,494 1,482 1 tax provision Segment $ 794 $ 886 $ 934 $ 665 $ 889 (11 ) $ 2,614 $ 2,535 3 income Effective 37.1 % 35.1 % 36.9 % 38.6 % 37.0 % 36.4 % 36.9 % tax rate Selected Statistical Information (Billions, except percentages and where indicated) Card $ 143.4 $ 144.1 $ 132.5 $ 145.0 $ 136.2 5 $ 420.0 $ 397.0 6 billed business Total 47.4 46.3 45.9 45.6 45.2 5 47.4 45.2 5 cards-in-force (millions) Basic 35.4 34.6 34.2 34.0 33.7 5 35.4 33.7 5 cards-in-force (millions) Average $ 4,098 $ 4,210 $ 3,875 $ 4,281 $ 4,069 1 $ 12,166 $ 12,008 1 basic Card Member spending (dollars) U.S. Consumer Travel: Travel $ 943 $ 1,020 $ 988 $ 817 $ 956 (1 ) $ 2,951 $ 2,957 (0 ) sales (millions) Travel 7.1 % 7.1 % 6.6 % 7.5 % 7.4 % 6.9 % 7.1 % commissions and fees/sales Total $ 107.7 $ 108.2 $ 107.7 $ 113.2 $ 103.3 4 $ 107.7 $ 103.3 4 segment assets (P) Segment $ 10.3 $ 10.8 $ 10.8 $ 10.4 $ 9.9 4 $ 10.3 $ 9.9 4 capital (N) Return on 31.4 % 32.6 % 32.1 % 32.5 % 35.5 % 31.4 % 35.5 % average segment capital (O) Return on 32.6 % 33.8 % 33.2 % 33.6 % 36.6 % 32.6 % 36.6 % average tangible segment capital (O) Card Member receivables: Total $ 22.0 $ 22.1 $ 21.5 $ 22.5 $ 21.3 3 $ 22.0 $ 21.3 3 receivables 30 days 1.6 % 1.5 % 1.7 % 1.7 % 1.6 % 1.6 % 1.6 % past due as a % of total Average $ 22.0 $ 22.0 $ 21.3 $ 21.8 $ 21.4 3 $ 21.8 $ 21.1 3 receivables Net 1.6 % 1.6 % 2.2 % 1.4 % 1.5 % 1.8 % 1.7 % write-off rate (principal only) (L) Net 1.9 % 1.8 % 2.4 % 1.6 % 1.7 % 2.0 % 1.9 % write-off rate (principal and fees) (L) Card Member loans: Total $ 62.1 $ 61.7 $ 59.9 $ 62.6 $ 58.0 7 $ 62.1 $ 58.0 7 loans 30 days 1.0 % 0.9 % 1.0 % 1.0 % 1.0 % 1.0 % 1.0 % past due loans as a % of total Average $ 62.1 $ 60.9 $ 60.4 $ 59.7 $ 58.0 7 $ 61.2 $ 57.0 7 loans Net 1.3 % 1.4 % 1.5 % 1.3 % 1.4 % 1.4 % 1.6 % write-off rate (principal only) (L) Net 1.5 % 1.6 % 1.7 % 1.5 % 1.6 % 1.6 % 1.8 % write-off rate (principal, interest and fees) (L) Net 9.2 % 8.9 % 9.1 % 9.0 % 9.1 % 9.1 % 9.0 % interest income divided by average loans (M) Net 9.4 % 9.2 % 9.5 % 9.1 % 9.2 % 9.3 % 9.3 % interest yield on Card Member loans (M) # - Denotes a variance of more than 100 percent. International (Preliminary) Card Services Selected Income Statement Data (Millions, except percentages) Quarters Ended % Change Nine Months Ended % Change Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Sep 30, 2015 vs. Sep 30, Sep 30, 2015 vs. 2015 2015 2015 2014 2014 Sep 30, 2014 2015 2014 Sep 30, 2014 Revenues Non-interest $ 1,071 $ 1,082 $ 1,061 $ 1,166 $ 1,206 (11 ) $ 3,214 $ 3,571 (10 ) revenues Interest 226 236 244 260 273 (17 ) 706 825 (14 ) income Interest 59 60 64 71 85 (31 ) 183 259 (29 ) expense Net interest 167 176 180 189 188 (11 ) 523 566 (8 ) income Total revenues 1,238 1,258 1,241 1,355 1,394 (11 ) 3,737 4,137 (10 ) net of interest expense Provisions 85 83 76 95 98 (13 ) 244 275 (11 ) for losses Total revenues 1,153 1,175 1,165 1,260 1,296 (11 ) 3,493 3,862 (10 ) net of interest expense after provisions for losses Expenses Marketing, 500 472 437 555 532 (6 ) 1,409 1,605 (12 ) promotion, rewards, Card Member services and other Salaries and 548 559 544 704 588 (7 ) 1,651 1,809 (9 ) employee benefits and other operating expenses Total 1,048 1,031 981 1,259 1,120 (6 ) 3,060 3,414 (10 )
(MORE TO FOLLOW) Dow Jones Newswires
October 22, 2015 02:00 ET (06:00 GMT)
Pretax segment 105 144 184 1 176 (40 ) 433 448 (3 ) income Income 16 19 50 (32 ) 34 (53 ) 85 70 21 tax provision/(benefit) Segment income $ 89 $ 125 $ 134 $ 33 $ 142 (37 ) $ 348 $ 378 (8 ) Effective 15.2 % 13.2 % 27.2 % # 19.3 % 19.6 % 15.6 % tax rate Selected Statistical Information (Billions, except percentages and where indicated) Card billed $ 29.6 $ 30.0 $ 28.7 $ 34.0 $ 33.9 (13 ) $ 88.3 $ 99.9 (12 ) business Total 15.2 15.0 14.9 15.7 15.8 (4 ) 15.2 15.8 (4 ) cards-in-force (millions) Basic 10.6 10.4 10.4 11.0 10.9 (3 ) 10.6 10.9 (3 ) cards-in-force (millions) Average basic $ 2,827 $ 2,888 $ 2,729 $ 3,109 $ 3,100 (9 ) $ 8,432 $ 9,185 (8 ) Card Member spending (dollars) International Consumer Travel: Travel sales $ 325 $ 333 $ 334 $ 353 $ 362 (10 ) $ 992 $ 1,069 (7 ) (millions) Travel 5.8 % 6.9 % 7.2 % 7.4 % 6.9 % 6.7 % 6.6 % commissions and fees/sales Total segment $ 34.9 $ 29.2 $ 29.0 $ 30.7 $ 31.1 12 $ 34.9 $ 31.1 12 assets (P) Segment $ 3.3 $ 3.5 $ 3.2 $ 3.0 $ 3.0 12 $ 3.3 $ 3.0 12 capital (N) Return on 11.9 % 13.9 % 12.7 % 13.6 % 15.8 % 11.9 % 15.8 % average segment capital (O) Return on 19.4 % 23.3 % 22.3 % 24.6 % 28.9 % 19.4 % 28.9 % average tangible segment capital (O) Card Member receivables: Total $ 6.5 $ 6.8 $ 6.4 $ 7.7 $ 7.3 (11 ) $ 6.5 $ 7.3 (11 ) receivables 30 days past 1.5 % 1.4 % 1.6 % 1.3 % 1.4 % 1.5 % 1.4 % billing as a % of total Net write-off 2.2 % 2.1 % 1.9 % 1.8 % 1.9 % 2.1 % 2.0 % rate (principal only) (L) Net write-off 2.4 % 2.3 % 2.0 % 1.9 % 2.1 % 2.2 % 2.1 % rate (principal and fees) (L) Card Member loans: Total loans $ 6.7 $ 7.2 $ 6.8 $ 7.7 $ 8.0 (16 ) $ 6.7 $ 8.0 (16 ) 30 days past 1.6 % 1.6 % 1.8 % 1.6 % 1.6 % 1.6 % 1.6 % due loans as a % of total Average loans $ 6.9 $ 7.0 $ 7.2 $ 7.9 $ 8.3 (17 ) $ 7.0 $ 8.3 (16 ) Net write-off 1.8 % 2.0 % 2.0 % 1.9 % 1.9 % 2.0 % 2.0 % rate (principal only) (L) Net write-off 2.3 % 2.5 % 2.5 % 2.4 % 2.4 % 2.4 % 2.4 % rate (principal, interest and fees) (L) Net interest 9.7 % 10.1 % 10.0 % 9.6 % 9.1 % 10.0 % 9.1 % income divided by average loans (Q) Net interest 10.5 % 10.7 % 10.9 % 10.5 % 9.9 % 10.7 % 9.9 % yield on Card Member loans (Q) # - Denotes a variance of more than 100 percent. Global (Preliminary) Commercial Services Selected Income Statement Data (Millions, except percentages) Quarters Ended % Change Nine Months Ended % Change Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Sep 30, 2015 vs. Sep 30, Sep 30, 2015 vs. 2015 2015 2015 2014 2014 Sep 30, 2014 2015 2014 Sep 30, 2014 Revenues Non-interest $ 858 $ 924 $ 871 $ 1,635 $ 957 (10 ) $ 2,653 $ 3,538 (25 ) revenues Interest 3 3 4 4 4 (25 ) 10 11 (9 ) income Interest 44 46 48 54 61 (28 ) 138 186 (26 ) expense Net (41 ) (43 ) (44 ) (50 ) (57 ) (28 ) (128 ) (175 ) (27 ) interest expense Total 817 881 827 1,585 900 (9 ) 2,525 3,363 (25 ) revenues net of interest expense Provisions 38 42 35 50 49 (22 ) 115 130 (12 ) for losses Total 779 839 792 1,535 851 (8 ) 2,410 3,233 (25 ) revenues net of interest expense after provisions for losses Expenses Marketing, 160 156 164 178 161 (1 ) 480 504 (5 ) promotion, rewards, Card Member services and other Salaries 381 369 344 408 381 - 1,094 1,270 (14 ) and employee benefits and other operating expenses Total 541 525 508 586 542 (0 ) 1,574 1,774 (11 ) Pretax 238 314 284 949 309 (23 ) 836 1,459 (43 ) segment income Income 87 111 104 355 105 (17 ) 302 510 (41 ) tax provision Segment $ 151 $ 203 $ 180 $ 594 $ 204 (26 ) $ 534 $ 949 (44 ) income Effective 36.6 % 35.4 % 36.6 % 37.4 % 34.0 % 36.1 % 35.0 % tax rate Selected Statistical Information (Billions, except percentages and where indicated) Card $ 45.0 $ 46.4 $ 45.3 $ 47.1 $ 46.5 (3 ) $ 136.6 $ 139.6 (2 ) billed business Total 6.9 6.9 6.9 6.9 6.9 - 6.9 6.9 - cards-in-force (millions) Basic 6.9 6.9 6.9 6.9 6.9 - 6.9 6.9 - cards-in-force (millions) Average $ 6,529 $ 6,739 $ 6,567 $ 6,817 $ 6,691 (2 ) $ 19,838 $ 19,905 (0 ) basic Card Member spending (dollars) Total $ 19.6 $ 19.7 $ 19.6 $ 18.5 $ 20.6 (5 ) $ 19.6 $ 20.6 (5 ) segment assets (P) Segment $ 3.6 $ 4.0 $ 4.1 $ 3.8 $ 3.8 (6 ) $ 3.6 $ 3.8 (6 ) capital (N) Return on 29.2 % 30.3 % 39.9 % 40.9 % 30.3 % 29.2 % 30.3 % average segment capital (O) Return on 51.4 % 52.8 % 70.6 % 74.4 % 56.0 % 51.4 % 56.0 % average tangible segment capital (O) Card Member receivables: Total $ 15.7 $ 15.9 $ 15.7 $ 14.6 $ 16.4 (4 ) $ 15.7 $ 16.4 (4 ) receivables 90 days 0.7 % 0.7 % 0.7 % 0.8 % 0.8 % 0.7 % 0.8 % past billing as a % of total Net loss 0.08 % 0.09 % 0.10 % 0.08 % 0.09 % 0.09 % 0.09 % ratio (as a % of charge volume) # - Denotes a variance of more than 100 percent. Global (Preliminary) Network & Merchant Services Selected Income Statement Data (Millions, except percentages) Quarters Ended % Change Nine Months Ended % Change Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Sep 30, 2015 vs. Sep 30, Sep 30, 2015 vs. 2015 2015 2015 2014 2014 Sep 30, 2014 2015 2014 Sep 30, 2014 Revenues Non-interest $ 1,302 $ 1,326 $ 1,270 $ 1,399 $ 1,368 (5 ) $ 3,898 $ 4,027 (3 ) revenues Interest 26 23 20 17 14 86 69 35 97 income Interest (42 ) (47 ) (54 ) (61 ) (68 ) (38 ) (143 ) (208 ) (31 ) expense Net 68 70 74 78 82 (17 ) 212 243 (13 ) interest income Total 1,370 1,396 1,344 1,477 1,450 (6 ) 4,110 4,270 (4 ) revenues net of interest expense Provisions 14 13 11 35 24 (42 ) 38 58 (34 ) for losses Total 1,356 1,383 1,333 1,442 1,426 (5 ) 4,072 4,212 (3 ) revenues net of interest expense after provisions for losses Expenses
(MORE TO FOLLOW) Dow Jones Newswires
October 22, 2015 02:00 ET (06:00 GMT)
Marketing, 172 164 147 185 201 (14 ) 483 634 (24 ) promotion, rewards, Card Member services and other Salaries 461 524 488 587 555 (17 ) 1,473 1,628 (10 ) and employee benefits and other operating expenses Total 633 688 635 772 756 (16 ) 1,956 2,262 (14 ) Pretax 723 695 698 670 670 8 2,116 1,950 9 segment income Income 261 247 254 253 243 7 762 707 8 tax provision Segment $ 462 $ 448 $ 444 $ 417 $ 427 8 $ 1,354 $ 1,243 9 income Effective 36.1 % 35.5 % 36.4 % 37.8 % 36.3 % 36.0 % 36.3 % tax rate Selected Statistical Information (Billions, except percentages and where indicated) Global $ 258.9 $ 262.0 $ 245.6 $ 268.5 $ 258.1 0 $ 766.5 $ 754.3 2 Card billed business (R) Global Network & Merchant Services: Total $ 23.7 $ 17.6 $ 17.8 $ 18.1 $ 18.2 30 $ 23.7 $ 18.2 30 segment assets (P) Segment $ 2.5 $ 2.2 $ 2.2 $ 2.0 $ 2.0 28 $ 2.5 $ 2.0 28 capital (N) Return on 81.4 % 83.5 % 82.1 % 84.0 % 82.6 % 81.4 % 82.6 % average segment capital (O) Return on 89.5 % 92.0 % 90.6 % 92.9 % 91.3 % 89.5 % 91.3 % average tangible segment capital (O) Global Network Services: Card $ 41.1 $ 41.9 $ 39.1 $ 42.5 $ 41.6 (1 ) $ 122.1 $ 118.2 3 billed business Total 46.3 45.6 44.5 44.0 43.2 7 46.3 43.2 7 cards-in-force (millions) # - Denotes a variance of more than 100 percent. American (Preliminary) Express Company Components of Return on Average Equity (ROE), Return on Average Common Equity (ROCE), and Return on Average Tangible Common Equity (ROTCE) Appendix I (Millions, except percentages) For the Twelve Months Ended Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, 2015 2015 2015 2014 2014 ROE Net $ 5,711 $ 5,922 $ 5,978 $ 5,885 $ 5,746 income Average $ 21,349 $ 21,050 $ 20,606 $ 20,254 $ 19,948 shareholders' equity Return on 26.8 % 28.1 % 29.0 % 29.1 % 28.8 % average equity (S) Reconciliation of ROCE and ROTCE Net $ 5,711 $ 5,922 $ 5,978 $ 5,885 $ 5,746 income Preferred 42 20 - - - shares dividends and related accretion Earnings 43 44 45 46 46 allocated to participating share awards and other Net $ 5,626 $ 5,858 $ 5,933 $ 5,839 $ 5,700 income attributable to common shareholders Average $ 21,349 $ 21,050 $ 20,606 $ 20,254 $ 19,948 shareholders' equity Average 1,081 716 350 114 - preferred shares Average $ 20,268 $ 20,334 $ 20,256 $ 20,140 $ 19,948 common shareholders' equity Average 3,796 3,802 3,845 3,888 3,941 goodwill and other intangibles Average $ 16,472 $ 16,532 $ 16,411 $ 16,252 $ 16,007 tangible common shareholders' equity Return on 27.8 % 28.8 % 29.3 % 29.0 % 28.6 % average common equity (S) Return on 34.2 % 35.4 % 36.2 % 35.9 % 35.6 % average tangible common equity (T) American (Preliminary) Express Company Components of Return on Average Segment Capital (ROSC) and Return on Average Tangible Segment Capital (ROTSC) Appendix II (Millions, except percentages) For the Twelve Months Ended Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, 2015 2015 2015 2014 2014 U.S. Card Services Segment $ 3,279 $ 3,374 $ 3,258 $ 3,200 $ 3,399 income Average $ 10,437 $ 10,352 $ 10,148 $ 9,843 $ 9,580 segment capital Average 377 358 339 319 299 goodwill and other intangibles Average $ 10,060 $ 9,994 $ 9,809 $ 9,524 $ 9,281 tangible segment capital Return 31.4 % 32.6 % 32.1 % 32.5 % 35.5 % on average segment capital (U) Return 32.6 % 33.8 % 33.2 % 33.6 % 36.6 % on average tangible segment capital (U) International Card Services Segment $ 381 $ 434 $ 386 $ 411 $ 481 income Average $ 3,195 $ 3,133 $ 3,043 $ 3,020 $ 3,043 segment capital Average 1,236 1,273 1,311 1,350 1,376 goodwill and other intangibles Average $ 1,959 $ 1,860 $ 1,732 $ 1,670 $ 1,667 tangible segment capital Return 11.9 % 13.9 % 12.7 % 13.6 % 15.8 % on average segment capital (U) Return 19.4 % 23.3 % 22.3 % 24.6 % 28.9 % on average tangible segment capital (U) Global Commercial Services Segment $ 1,128 $ 1,181 $ 1,539 $ 1,543 $ 1,131 income Average $ 3,861 $ 3,897 $ 3,859 $ 3,771 $ 3,736 segment capital Average 1,666 1,661 1,678 1,696 1,715 goodwill and other intangibles Average $ 2,195 $ 2,236 $ 2,181 $ 2,075 $ 2,021 tangible segment capital Return 29.2 % 30.3 % 39.9 % 40.9 % 30.3 % on average segment capital (U) Return 51.4 % 52.8 % 70.6 % 74.4 % 56.0 % on average tangible segment capital (U) Global Network & Merchant Services Segment $ 1,771 $ 1,736 $ 1,661 $ 1,660 $ 1,642 income Average $ 2,177 $ 2,080 $ 2,024 $ 1,976 $ 1,989 segment capital Average 199 194 190 189 190 goodwill and other intangibles Average $ 1,978 $ 1,886 $ 1,834 $ 1,787 $ 1,799 tangible segment capital Return 81.4 % 83.5 % 82.1 % 84.0 % 82.6 % on average segment capital (U) Return 89.5 % 92.0 % 90.6 % 92.9 % 91.3 % on average tangible segment capital (U) American (Preliminary) Express Company Net Interest Yield on Card Member Loans Appendix III (Millions, except percentages and where indicated) Quarters Ended Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, 2015 2015 2015 2014 2014 Net $ 1,505 $ 1,423 $ 1,447 $ 1,424 $ 1,395 interest income Exclude: Interest $ 234 $ 249 $ 249 $ 250 $ 247 expense not attributable to the Company's Card Member loan portfolio Interest $ (96 ) $ (97 ) $ (95 ) $ (92 ) $ (90 ) income not attributable to the Company's Card Member loan portfolio Adjusted $ 1,643 $ 1,575 $ 1,601 $ 1,582 $ 1,552 net interest income (V) Average $ 69.0 $ 68.0 $ 67.6 $ 67.7 $ 66.4 loans (billions) Exclude: Certain $ (0.2 ) $ (0.2 ) $ (0.2 ) $ (0.2 ) $ (0.2 ) non-traditional Card Member loans and other fees (billions) Adjusted $ 68.8 $ 67.8 $ 67.4 $ 67.5 $ 66.2 average loans (billions) (W) Net 8.7 % 8.4 % 8.6 % 8.4 % 8.5 % interest income divided by average loans (X) Net 9.5 % 9.3 % 9.6 % 9.3 % 9.3 % interest yield on Card Member loans (Y) U.S. Card (Preliminary) Services and International Card Services Net Interest Yield on Card Member Loans Appendix IV (Millions, except percentages and where indicated) Quarters Ended Nine Months Ended Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Sep 30, Sep 30, 2015 2015 2015 2014 2014 2015 2014 USCS: Net $ 1,427 $ 1,354 $ 1,377 $ 1,341 $ 1,313 $ 4,158 $ 3,841 interest income Exclude: Interest $ 42 $ 41 $ 38 $ 39 $ 39 $ 121 $ 118 expense not attributable to the Company's Card Member loan portfolio Interest $ (4 ) $ (4 ) $ (3 ) $ (3 ) $ (3 ) $ (11 ) $ (8 ) income not attributable to the Company's Card Member loan portfolio Adjusted $ 1,465 $ 1,391 $ 1,412 $ 1,377 $ 1,349 $ 4,268 $ 3,951 net interest income (V) Average $ 62.1 $ 60.9 $ 60.4 $ 59.7 $ 58.0 $ 61.2 $ 57.0 loans (billions) Exclude:
(MORE TO FOLLOW) Dow Jones Newswires
October 22, 2015 02:00 ET (06:00 GMT)
Certain $ - $ - $ - $ - $ - $ - $ - non-traditional Card Member loans and other fees (billions) Adjusted $ 62.1 $ 60.9 $ 60.4 $ 59.7 $ 58.0 $ 61.2 $ 57.0 average loans (billions) (W) Net 9.2 % 8.9 % 9.1 % 9.0 % 9.1 % 9.1 % 9.0 % interest income divided by average loans (X) Net 9.4 % 9.2 % 9.5 % 9.1 % 9.2 % 9.3 % 9.3 % interest yield on Card Member loans (Y) ICS: Net $ 167 $ 176 $ 180 $ 189 $ 188 $ 523 $ 566 interest income Exclude: Interest $ 18 $ 16 $ 18 $ 26 $ 24 $ 51 $ 63 expense not attributable to the Company's Card Member loan portfolio Interest $ (7 ) $ (8 ) $ (8 ) $ (9 ) $ (10 ) $ (24 ) $ (30 ) income not attributable to the Company's Card Member loan portfolio Adjusted $ 178 $ 184 $ 190 $ 206 $ 202 $ 550 $ 599 net interest income (V) Average $ 6.9 $ 7.0 $ 7.2 $ 7.9 $ 8.3 $ 7.0 $ 8.3 loans (billions) Exclude: Certain $ (0.1 ) $ (0.1 ) $ (0.1 ) $ (0.2 ) $ (0.2 ) $ (0.1 ) $ (0.2 ) non-traditional Card Member loans and other fees (billions) Adjusted $ 6.8 $ 6.9 $ 7.1 $ 7.7 $ 8.1 $ 6.9 $ 8.1 average loans (billions) (W) Net 9.7 % 10.1 % 10.0 % 9.6 % 9.1 % 10.0 % 9.1 % interest income divided by average loans (X) Net 10.5 % 10.7 % 10.9 % 10.5 % 9.9 % 10.7 % 9.9 % interest yield on Card Member loans (Y) Appendix (Preliminary) V All Information in the preceding tables is presented on a basis prepared in accordance with U.S. generally accepted accounting principles (GAAP), unless otherwise indicated. (A) In Q1'15, the Company changed the classification related to certain payments to co-brand partners reducing both marketing and promotion and discount revenue. The misclassification in prior periods has been conformed to the current period presentation. The discount rate for prior periods has also been revised accordingly, resulting in a reduction of between zero and one basis point in any period from what was originally reported. (B) Beginning in Q3'15, Travel Commissions & Fees and Other Commissions & Fees are consolidated into Other Fees & Commissions. (C) Represents net income, less (i) earnings allocated to participating share awards of $10 million for the quarter ended September 30, 2015, $11 million for the quarter ended June 30, 2015, $11 million for the quarter ended March 31, 2015, $11 million for the quarter ended December 31, 2014 and $11 million for the quarter ended September 30, 2014; and (ii) dividends on preferred shares of $22 million for the quarter ended September 30, 2015, $20 million for the quarter ended June 30, 2015 and nil for all other comparative periods. (D) Refer to Appendix I for components of return on average equity, return on average common equity and return on average tangible common equity, a non-GAAP measure. (E) Card billed business includes activities (including cash advances) related to proprietary cards, cards issued under network partnership agreements (non-proprietary billed business), and certain insurance fees charged on proprietary cards. In-store spend activity within retail co-brand portfolios in Global Network Services, from which the Company earns no revenue, is not included in non-proprietary billed business. Card billed business is reflected in the United States or outside the United States based on where the issuer is located. (F) Total cards-in-force represents the number of cards that are issued and outstanding. Proprietary basic consumer cards-in-force includes basic cards issued to the primary account owner and does not include additional supplemental cards issued on that account. Proprietary basic small business and corporate cards-in-force include basic and supplemental cards issued to employee Card Members. Non-proprietary cards-in-force includes all cards that are issued and outstanding under network partnership agreements, except for retail co-brand Card Member accounts that have no out-of-store spend activity during the prior 12 month period. (G) This calculation is designed to reflect pricing at merchants accepting general purpose American Express cards. It represents the percentage of billed business (both proprietary and Global Network Services) retained by the Company from merchants it acquires, prior to payments to third parties unrelated to merchant acceptance. (H) Average basic Card Member spending and average fee per card are computed from proprietary card activities only. Average fee per card is computed based on net card fees, including the amortization of deferred direct acquisition costs divided by average worldwide proprietary cards-in-force. The adjusted average fee per card, which is a non-GAAP measure, is computed in the same manner, but excludes amortization of deferred direct acquisition costs. The amount of amortization excluded for these periods was $72 million for the quarter ended September 30, 2015, $62 million for the quarter ended June 30, 2015, $83 million for the quarter ended March 31, 2015, $79 million for the quarter ended December 31, 2014, and $77 million for the quarter ended September 30, 2014. The Company presents adjusted average fee per card because the Company believes this metric presents a useful indicator of card fee pricing across a range of its proprietary card products. (I) Provisions for principal (resulting from authorized transactions) and fee reserve components. (J) Consists of principal (resulting from authorized transactions), interest and/or fees, less recoveries. (K) Beginning in first quarter 2014, reserves related for card-related fraud losses are reflected in Other liabilities. All periods include foreign currency translation adjustments and other items. (L) The Company presents a net write-off rate based on principal losses only (i.e., excluding interest and/or fees) to be consistent with industry convention. In addition, because the Company's practice is to include uncollectible interest and/or fees as part of its total provision for losses, a net write-off rate including principal, interest and/or fees is also presented. Beginning in January 2015, timing of charge-offs for loans in certain modification programs changed from 180 days past due to 120 days past due. Excluding the impact of the change, which was fully recognized in the first quarter, the Q1'15 USCS/ICS Charge net write-off rate - principal only was 1.9% and the USCS Lending net write-off rate - principal only was 1.4%. (M) See Appendix III for quarterly calculations of net interest yield on Card Member loans, a non-GAAP measure, and net interest income divided by average loans, a GAAP measure, and the Company's rationale for presenting net interest yield on Card Member loans. For calculations for the twelve months ended December 31, 2014 and 2013, please refer to Annex 3 of the Company's 2014 Fourth Quarter/ Full Year Earnings Supplement on file with the Securities and Exchange Commission. (N) Segment capital represents capital allocated to a segment based upon specific business operational needs, risk measures, and regulatory capital requirements. (O) Refer to Appendix II for components of return on average segment capital and return on average tangible segment capital, a non-GAAP measure. (P) Revised prospectively, as a result of systems enhancements, to reclassify certain intercompany accounts. (Q) See Appendix IV for calculations of net interest yield on Card Member loans, a non-GAAP measure, and net interest income divided by average loans, a GAAP measure, and the Company's rationale for presenting net interest yield on Card Member loans.
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October 22, 2015 02:00 ET (06:00 GMT)
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